Why higher interest rates haven't crushed corporate profits 🤔
In business, it's never ceteris paribus 🧐
Interest rates have trended higher for the past three years, after falling for 40 years.
The most obvious headwind is higher interest expenses on any floating-rate debt or maturing fixed-rate debt that has to be refinanced at higher market interest rates.
However, these higher interest rates haven’t yet taken a material bite out of corporate profits.